29. Mar 2022 | Corporate News

CANCOM closes financial year 2021 with record EBIT growth of 31 percent and proposes dividend increase to EUR 1.00

Group revenue rises very significantly by 10.9 percent to EUR 1,304.5 million

Group EBITDA of EUR 121.5 million 21.6 percent above previous year, EBITDA margin rises to 9.3 percent

Group segment Cloud Solutions grows by 12.2 percent and Group segment IT Solutions by 10.6 percent

Annual Recurring Revenue increases by 24.0 percent to EUR 181.8 million

Executive Board forecasts very significant growth in 2022 and proposes dividend increase to EUR 1.00 per share

CANCOM Group achieved revenue growth of 10.9 percent in the financial year 2021 with Group revenue of EUR 1,304.5 million (previous year: EUR 1,176.2 million*). Both the IT project business (IT Solutions) and the As-a-Service business (Cloud Solutions) achieved double-digit growth rates and thus contributed to the very significant increase in revenue. At EUR 121.5 million, Group EBITDA was even 21.6 percent above the comparable figure (previous year: EUR 99.9 million*). The EBITDA margin rose accordingly to 9.3 percent (previous year: 8.5 percent*). As announced when the preliminary figures were presented in February, the CANCOM Group’s EBIT of EUR 77.4 million was 30.5 percent up on the previous year (previous year: EUR 59.3 million*).

“Despite supply bottlenecks for IT components and the existing exceptional situation of the Corona pandemic, the CANCOM business model is producing record highs in growth and profitability. This makes me confident that we will also master the new year 2022 very well,” said Rudolf Hotter, CEO of CANCOM SE.

On the basis of the current business success, the Executive Board and Supervisory Board of CANCOM SE have decided to propose to the Annual General Meeting that the dividend be increased to EUR 1.00 per share (previous year: EUR 0.75).

Cash flow from operating activities increased to EUR 72.3 million in the 2021 financial year (previous year: EUR 68.2 million). Cash and cash equivalents amounted to EUR 653.0 million (previous year: EUR 338.4 million), plus treasury shares with a total market value of EUR 47.8 million as at 31 December 2021.

Record profitability in the Cloud Solutions segment

In the Cloud Solutions segment, revenue in the 2021 financial year rose to EUR 238.4 million, an increase of 12.2 percent (previous year: EUR 212.4 million*). At EUR 80.1 million, EBITDA was 18.8 percent higher than in 2020 (previous year: EUR 67.4 million*). With an EBITDA margin of 33.6 percent, profitability improved again despite the high baseline (previous year: 31.8 percent*). Annual Recurring Revenue (ARR) from Managed Service contracts rose by 24.0 percent to EUR 181.8 million (previous year: EUR 146.6 million*).

Although the worldwide supply bottlenecks for IT components in the 2021 financial year had a negative impact particularly on revenue development in the IT Solutions segment, CANCOM was able to increase segment revenue very significantly by 10.6 percent to EUR 1,065.7 million (previous year: EUR 963.7 million*), thanks to its good market position. EBITDA in the segment rose by 11.9 percent to EUR 58.7 million (previous year: EUR 52.4 million*). The EBITDA margin was thus 5.5 percent (previous year: 5.4 percent*).

Revenue in the fourth quarter of 2021 exceeds the previous year’s high figure

In the fourth quarter alone, the CANCOM Group exceeded the previous year’s already high figure for Group revenue. At the end of the financial year, quarterly revenue of EUR 356.6 million was recorded (previous year: EUR 336.9 million*). Group EBITDA was EUR 36.9 million (previous year: EUR 39.3 million*).

In the Cloud Solutions segment, revenue in the fourth quarter rose to EUR 61.5 million (previous year: EUR 42.0 million*), EBITDA was EUR 21.0 million (previous year: EUR 21.4 million*). In the IT Solutions segment, quarterly revenue was EUR 294.9 million (previous year: EUR 294.8 million*) and EBITDA was EUR 20.6 million (previous year: EUR 21.7 million*).

About CANCOM

As a leading Digital Business Provider, CANCOM leads companies, organizations and the public sector into the digital future. The range of services and solutions includes classic system house IT solutions as well as data-based digital solutions, managed services and cloud services. We accompany the digital evolution of our customers with passion and technology and support them in reducing the complexity of their IT and developing new business models. We offer a holistic portfolio for all IT and business requirements.

The CANCOM Group’s offering comprises innovative solutions in the areas of Artificial Intelligence, Security & Network, Datacenter & Cloud, IoT Solutions and Modern Workplace and includes services for the entire IT lifecycle – from the provision of IT infrastructures, planning and integration, to support, managed services and XaaS. Customers benefit from the extensive expertise with which their diverse requirements are translated into concrete industry-specific IT solutions to significantly promote their business success.

The more than 5,600 employees of the internationally active CANCOM Group with around 80 locations in the DACH region, Belgium, Slovakia, Romania and the Czech Republic as well as an efficient partner network ensure market presence and customer proximity. The CANCOM Group is managed by Rüdiger Rath (CEO), Jochen Borenich (CSO) and Thomas Stark (CFO). The company is headquartered in Munich. CANCOM generated annual revenue of around 1.5 billion euros in 2023. The Group parent company CANCOM SE is listed on the Frankfurt Stock Exchange in the TecDAX and SDAX (ISIN DE0005419105).